International trends for the electronic exchange of business documents

Transcription

1 International trends for the electronic exchange of business documents Bruno Koch Traditional Documents Disadvantages High paper volume Long transport times Long processing time High processing costs Problems with data quality Archiving, costs, find them End-to-End full costs Business document = EUR 1-50 Invoice = EUR 30 (Source: EACT, European Treasurer Association) Seite 2 1

2 Market structure and volume page 3 Document Landscape European View Unstructured Business Information s, Contracts, Supplier Structured VAT compliant documents Bills, Invoices Buyer Structured Statements Orders, Order Confirmations, Delivery Notes, page 4 2

3 European document volume Unstructured Business Information s, Contracts,? Supplier Structured and VAT compliant documents Bills, Invoices millions Buyer Structured Statements millions Orders, Order Confirmations, Delivery Notes, page 5 Market status and development page 6 3

4 E-Invoice just a common message? page 7 E-Invoicing/E-Billing market figures Europe (E) Participants 630,000 corporates 18.6 million consumers 930,000 (+50% ) 21.6 (+16%) Electronic vol. only B2C B2B Electr. with paper summary invoice # Service providers 700 million million million (+20%) (+50%) 350 million (part. replaced by digitally signed invoices) 340 (+30%) page 8 4

5 Market penetration 2008 (electronic share of total volume of 30 billion) B2B B2C >12% 4-12% 1-4% <1% page 9 Evolution Phase 1: today Biller Pi Private Pioneers Telcos (KPN, DTAG,...) Utilities Cards Bank Corporate Focus B2C B2B (without VAT compliance) Status > 5 million subscribers 2006 Bruno Koch, page 10 5

6 Evolution Phase 2: today Biller EBPP Hub / Consolidator Private Pioneers FSI (PayNet, Isabel,...) IT companies (CheckFree, ee, TietoEnator,...) Focus Domestic markets B2C B2B (VAT compliance) Bank Corporate Status At least 260 consolidators Some with several thousands of participants About 40 with > 1 million annually processed E-Invoices 2006 Bruno Koch, page 11 Evolution Phase 3: now Biller Private Receivers EBPP Hub / Consolidator Biller Private Receivers EBPP Hub / Consolidator Pioneers Belgium Scandinavia a a Switzerland Banks Corporate Receivers Biller Private Receivers Banks Corporate Receivers Focus Domestic & international networks Banks EBPP Hub / Consolidator Corporate Receivers Status At least 25 consolidators with one or more interconnections 2006 Bruno Koch, page 12 6

7 Possible results for an organisation page 13 Roll-out models and success rate by using service providers Sender driven Opt-Out Isabel (BE) 90% Leasing company (NL) 85% Sender driven Opt-In In existing supplier-buyer networks: 5-50% Free offering to all in the market: 1-5% driven Opt-Out Danish government: 70% of all invoices after 1 year electronic 100% digitalised with full services (electronic & scanning) driven Opt-In Large buyers: 50-70% of all invoices after 1 year electronically (e.g. Hewlett- Packard, LogicaCMG, UBS) 100% digitalised with full services (electronic & scanning) page 14 7

8 Invoice volume and potential cost saving Example of corporate with employees Inbound invoices Internal invoices Company Division 1 Division 2 Outbound invoices Division.. # invoices Saving/Invoice (EUR) Potential long-term Potential page 15 Obstacles and how to overcome them page 16 8

9 Challenges for the E-Invoicing market Dozens of countries, languages and regulations Relatively fragmented landscape with 23 million small and medium size enterprises (SMEs) and thousands of different ERP systems Standards as enabler 35-38% of todays volume is based on standards Some E-Invoicing country standards: Austria, Belgium, Denmark, Finland, Italy, Spain, Sweden, Switzerland International standards or subsets International end-to-end service offering with a singlepoint-of-contact for invoice issuers and recipients Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 17 Challenges for the E-Invoicing market Laws & regulations: The EU directive is adapted to local laws in 27 different ways. Any-to-any data formatting, archiving services as well as an economical and easy access for SMEs. Interoperability among service providers (e-invoice roaming), offering participants an end-to-end service with a single point of contact. page 18 9

10 Challenges for a company using direct models Involve lawyers for clarifying the rules and legislation in all the countries where counter parties are located. Convince counter parties Send/receive electronic invoices in your proprietary way Send/receive the desired format (conversion services) Generate a VAT compliant invoice respectively verify validity of signature and generate log-file. Build own archive and answer questions regarding archiving of invoices for your counter parties A vast majority of organisations use external services page 19 How to address all sizes of companies Issuer Large Full ERP integration Full ERP integration Two-way communication Two-way communication External archive (later External archive (later optional in house) optional in house) Medium Small Full ERP integration DMO Systems Export Tools (CSV,...) Et External archive Printer Driver WebEDI (type in invoice) Forms, e.g. FastPath External or CD archive Full ERP integration Import Tools (CSV,...) External archive Browser presentment & download, e.g. via homebanking External or CD archive page 20 10

11 Complementary services covering all sizes of organisation in a Nordic country Non-bank consolidators (1) Bank consolidators serving SMEs (2) Issuer (large) Issuer (medium) Issuer (small) (1) (large) (medium) (small) Issuer (large) Issuer (medium) Issuer (small) Consolidators Consolidators Consolidators Consolidators (large) (medium) (small) Consumer (2) Consumer page 21 Swiss E-Invoicing roaming landscape Source: page 22 11

12 Government as enabler page 23 European governments evolution steps Electronic Message Invoice Order Order confirmation Invoice E-Procurement Financial Supply Chain Invoice Payment & Advice Cash management 2006 Bruno Koch, page 24 12

13 100% digitalisation: Denmark government 1'400'000 of monthly Invoices # 1'200' '000' ' ' ' '000 Scan XML 0 Feb 05 Apr 05 Jun 05 Aug 05 Oct 05 Dec 05 Feb 06 Apr 06 Jun 06 Aug 06 Source: H. Brondholt Nielsen, Danish Government 2006 Bruno Koch, page 25 Support through government initiatives 15 European countries actively pushing E-Invoicing Portugal page 26 13

14 Helsinki Manifesto (Nov 2006) Initiatives to flatten the (European) world page 27 EC Activities E-invoicing Expert Group on E-invoicing [ ] (DG Enterprise and Industry, DG Internal Market) FISCALIS initiative on e-audit, including auditing of e-invoices [ongoing] Study in preparation p of the review of the VAT Directive 2001/115/EC [1-2Q08] (DG Taxation and Customs Union) Study on e-invoicing business requirements in the public sector, and pilot implementation [4Q07 4Q09] (DG Informatics, DG Internal Market) E-signatures E-commerce E-procurement Interservice Group for the harmonisation of e-signatures [ongoing] (DG Information Society, DG Internal Market, DG Informatics) Expert Group on the review of the E-commerce Directive [ongoing] (DG Internal Market) CIP ICT-PSP pilot action on e-procurement, including e-invoicing [1st CfP closed on 23/10/2007] (DG Information Society) Electronic Public Procurement progress review [ongoing] (DG Internal Market) Group developing self-regulatory measures to increase the B2B use by SMEs [ongoing] (DG Enterprise and Industry) page 28 14

15 Outlook page 29 European Outlook Private industry Until 2010 likely all corporates with employees practice E-Invoicing and 25% of all SMEs (Small and Medium-sized Enterprises) Enhancements along the Supply Chain and closed electronic loop from the order via invoice up to the payment i2010 agenda of the European Community Obligation in most European countries for sending/receiving invoices with government paperfree Framework for international E-Business page 30 15

16 Turkey Multinationals will be invited or forced to exchange electronically in 2008 Large organisations recognize the big saving potential and launch projects by themselves in 2008/2009 SMEs will be affected by the demand of their large customers after 2009 Government? page 31 Questions? Bruno Koch page 32 16

17 Appendices page 33 About Billentis Highly specialized consulting company (E-Invoicing, optimisation of Procure-to-Pay and Financial Supply Chain) Founded in June 1999 Owner: B. Koch (8 years PwC, 4 years Credit Suisse, 2 years Telekurs PayNet) More than 120 customers in 25 countries Issuer of a European market report Issuer of a quarterly newsletter (40+ countries) Founder of the European EXPP Summit, page 34 17

18 Services: consulting & project management Awareness, strategy and know-how workshops Feasibility studies; location of potential and involved business fields Identification of business opportunities Development of strategy and business plans Definition of RFPs, incl. country characteristics and the most suitable billing model Network and build strategic alliances Formulation of marketing and distribution strategies Project management/support as far as up-and-running service Procedure documentation (legal requirement) page 35 18